So, you have had the great big idea and are currently working out of a garage (preferably your own) after having left your cushy job. You’re probably wondering about building your team and hiring the best minds there are. Before you begin the search, think for a while. Do freelancers factor in anywhere in this dream team of yours? If the answer is a resounding YES, then we’re sure you will love our services, but if it’s a NO then kindly allow us to tell you how much you can save by hiring a freelancer.
You pay for the work you get
Freelancers have a very quantifiable definition of ‘work’. When you hire someone for a specific project, you need to be entirely sure of the output you need – is it a video for your brand, is it regular blog work, or is it a one-time creative event-based project that you need collaterals for. Quantifying work makes it easier to decide on a payment structure and you pay for only the services you require.
You get the best minds in the business
Think only bored housewives get into freelancing? Think again! The global market for freelancers has been growing at 14% annually, with India contributing around $1 billion to the $-3 billion strong industry. There are around 15 million freelancers in India, and they form a talent pool of experts, amateurs and beginners from where you can take your pick. Many freelancers offer services that go beyond their day jobs, so when you hire someone good you know you’re getting cross-domain expertise for a reasonable rate!
There are no overheads
When you hire someone for a full-time role, you have to provide your employee with certain benefits such as gratuity, EPF, ESI etc. There are compliance and statutory costs to think of. None of this matters when you hire freelancers though, and thus your overheads reduce and your budget starts to look better than it did before.
You save on severance packages
When you let a full-time employee go, you also have to think about the severance packages and the ‘golden parachute’ you have to offer them. With a freelancer, this is not the case. Even if you never interact with a certain freelancer again, there is nothing to worry about.
Overall, you save about 30-35% by hiring a freelancer
Yes! If you take away the costs of overheads and that of maintaining a huge office (which you will need if you have a large in-house team), you will save by hiring a freelancer massively. Some estimates peg it at a 30-35% saving when you compare hiring freelancers to hiring in-house staff.
So, have we changed your perception of how much you can save by hiring a freelancer yet?
[…] It is essential that you keep the costs down, profits up, and we do not have a lot of cash. So, it is important to identify the type of project and the workload involved. For a one-off project hiring freelancer can be cost-effective. On the contrary, if you have a long-term project or regular work, a full-timer can be highly profitable. On the plus side, freelancers do work remotely, so no additional overhead expenses. If you hire a full-time employee, you need to pay them a fixed salary, sick leave, and a paid vacation. I mean come on, when was the last time you took a vacation? So, consider the long-term sustainability as it will have an enormous impact on the final costs. […]